Teucrium polium is an analgesic, antidiabetic and antilipeidemic herbal medicament. The aim of this survey was to evaluate the effect of aqueous extract T. polium on liver enzymes linked to liver dysfunction, serum lipids and glucose, in diabetic male rats. Methods: A total of 20 Sprague-Dawly male rats became diabetic by intraperitoneal injection of streptozotocin (60 mg/kg). the animals were divided randomly into two groups. Experimental group was fed Teucrium polium (50 mg/kg) for a month but control group was received the same volume of distilled water. Liver enzymes, biochemical parameters (cholesterol, triglyceride, low density lipoprotein, alanine transaminase, aspartae transaminase) and glucose were measured by kinetic (Enzymatic) and colorimetric methods. Data obtained were analyzed and mean values were compared by paired student's t-test. The results were expressed as mean ± SD. Significant differences were set at P<0.05. Results: Our results showed that in test group, serum glucose values decreased significantly (P<0.05), but cholesterol, triglyceride, low density lipoprotein, alanine transaminase and aspartae transaminase increased significantly after use of T. polium (P<0.05). This parameters value did not show any changes in control group. Conclusion: Although the aqueous extract of Teucrium polium has strong hypoglycemic properties in experimental animals, but because of some hepatotoxic effects, it is not suitable to use it in human as an antidiabetic agent.